AlixPartners Announces New Ownership Structure
On November 6, global advisory firm AlixPartners announced that a group led by the firm’s founder, Jay Alix, and three leading global investors, has agreed to acquire ownership stakes in the business from CVC Capital Partners. Willkie represented Jay Alix in the transaction, which values AlixPartners at more than $2.5 billion.
The new ownership structure will include Caisse de dépôt et placement du Québec, Public Sector Pension Investment Board and Investcorp Group, together with founder and current shareholder Jay Alix. AlixPartners’ managing directors will continue to hold a significant stake in the firm and have access to a new equity system.
Founded in 1981, AlixPartners works with clients to help them restore, grow and create sustainable value in high-impact situations. Its services comprise performance improvement; turnaround and restructuring; investigations, disputes and risk; digital transformation; and transformative leadership. CVC acquired a majority stake in AlixPartners in 2012. The firm has since grown from 950 to more than 1,600 professionals and expanded from 17 to 25 offices on four continents.
The Willkie deal team was led by partners Thomas Cerabino and Adam Turteltaub, and included partners Laura Delanoy, Jordan Messinger, Hillel Jacobson, Viktor Okasmaa and David Tayar; UK partner Henrietta de Salis; senior counsel Richard Reinhold; counsel Jonathan Konoff; and associates Laura Acker, Frances Dales, Erin Kinney, Halie Klein, Kapiljeet Dargan and Geri Anne McEvoy.
Washington Prime Group Forms $600 Million Joint Venture
Willkie represented Washington Prime Group, a publicly traded retail REIT, in connection with its execution of a definitive agreement providing for a joint venture with O’Connor Mall Partners, L.P., an affiliate of O’Connor Capital Partners. The joint venture will own seven of Washington Prime’s open-air properties, which are valued at approximately $600 million. This pricing implies a low five-percent capitalization rate on in-place NOI. Closing is targeted for the first quarter of 2017.
O’Connor will have a 49% interest in the joint venture and Washington Prime will retain a 51% interest. The seven properties in the joint venture will be: Arbor Hills, located in Ann Arbor, Michigan; Classen Curve/Nichols Hills Plaza/The Triangle at Classen Curve, located in Oklahoma City, Oklahoma; Gateway Center, located in Austin, Texas; Malibu Lumber Yard, located in Malibu, California; Palms Crossing, located in McAllen, Texas; The Arboretum, located in Austin, Texas; and The Shops at Arbor Walk, located in Austin, Texas. A Washington Prime affiliate will continue to lease and manage the properties.
The transaction is expected to generate net proceeds of approximately $350 million to Washington Prime after taking into account the assumption of existing debt on the properties and new debt to be placed on the assets that are currently unencumbered, and estimated closing costs. The net proceeds will be used to reduce the company’s outstanding debt, as well as for general corporate purposes.
The Willkie deal team was led by real estate partner David Drewes, with assistance from tax partner Henry Cohn, and associates Jennifer Coffey, Elizabeth Case, Steven Grant and Kapiljeet Dargan.